NEW YORK - Silver Spike Investment Corp. (NASDAQ: SSIC), a business development company, announced today that its stockholders have approved a significant acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC. This approval came during a special meeting of stockholders, where they also greenlit the election of three new board members and a new investment advisory agreement.
The loan portfolio acquisition, which will see Silver Spike issuing new shares of its common stock in exchange, is expected to close promptly, pending the satisfaction of closing conditions. This strategic move will result in the company’s rebranding to Chicago Atlantic BDC, Inc. and a ticker symbol change to LIEN.
Stockholders voted in favor of Frederick C. Herbst, John Mazarakis, and Jason Papastavrou joining the board, with their terms extending until the 2025, 2026, and 2027 annual meetings, respectively. Additionally, a new investment advisory agreement with Silver Spike Capital, LLC, mirroring the current agreement, was approved, ensuring continuity despite potential changes in SSC ownership.
Scott Gordon, Chairman and CEO of Silver Spike, expressed enthusiasm about leveraging the company’s increased scale to invest in promising cannabis and middle market companies, aiming to generate sustainable growth and value for stockholders.
Silver Spike, which focuses primarily on direct loans to privately held middle-market companies, particularly within the cannabis and health and wellness sectors, is managed by Silver Spike Capital, LLC. This acquisition aligns with the company's investment objective of maximizing risk-adjusted returns on equity.
The company cautioned that forward-looking statements involve risks and uncertainties, highlighting the potential for variations in actual results. Factors that could influence the outcome include the timing of the acquisition's closure, realization of anticipated benefits, and market conditions, among others.
This news is based on a press release statement from Silver Spike Investment Corp.
In other recent news, Silver Spike Investment Corp. has declared the re-election of its two board members, Scott Gordon and Michael W. Chorske. This decision was made during the company's annual stockholders meeting and was reported in a Form 8-K filed with the U.S. Securities and Exchange Commission. The voting results displayed a robust endorsement for the directors, with Gordon and Chorske receiving 5,038,763 and 4,878,642 votes respectively. This is a recent development, and the re-elected directors are expected to persist in steering the company's strategic direction. The definitive proxy statement, containing details about the matters voted upon, was filed with the SEC in April 2024. The annual meeting and subsequent filing ensure Silver Spike Investment Corp.'s ongoing compliance with SEC regulations and transparency with its investors.
InvestingPro Insights
In light of Silver Spike Investment Corp.'s recent shareholder approval for a significant loan portfolio acquisition, key metrics from InvestingPro provide a deeper understanding of the company's financial health and market position. As SSIC prepares for its rebranding to Chicago Atlantic BDC, Inc., these insights can help investors gauge the potential impact of the strategic move.
InvestingPro data highlights a robust revenue growth for SSIC, with an impressive 521.09% increase in the last twelve months as of Q2 2024. This surge is further evidenced by a quarterly revenue growth of 161.02% in Q2 2024, signaling strong performance and potential for future expansion. Additionally, the company boasts a high gross profit margin of 100% in the same period, indicating efficient management and a strong market position.
However, investors should note the high P/E ratio of 12.64, which suggests the stock may be trading at a premium relative to near-term earnings growth. This is somewhat mitigated by the adjusted P/E ratio dropping to 8.99, hinting at a more favorable valuation over time. The dividend yield stands at a significant 14.87%, which, according to an InvestingPro Tip, indicates that SSIC pays a considerable dividend to shareholders, a potential draw for income-focused investors.
Another InvestingPro Tip points out that SSIC has high shareholder yield, which could be appealing to investors looking for returns through dividends or share buybacks. This, combined with the fact that analysts predict the company will be profitable this year, adds a layer of investment attractiveness to the company's profile.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available on the platform. These tips provide further insights into Silver Spike's market potential, investment risks, and other critical factors that could influence investment decisions.
As the company navigates its acquisition and rebranding, these InvestingPro metrics and tips offer valuable information for stakeholders and potential investors to consider. For a deeper dive into SSIC's financials and expert analysis, investors can explore the full suite of tips at https://www.investing.com/pro/SSIC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.